1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iris [78.8K]
3 years ago
12

High-Low Method

Business
1 answer:
frozen [14]3 years ago
6 0

Answer:

Requirement 1

<em>High Point = March</em>

<em>Low Point = January</em>

Requirement 2

<em>Variable rate for tanning $0.41 per tanning appointment </em>

<em>Fixed cost per month $1,457</em>

Requirement 3

<em>Total Cost = $1,457 + $0.41 × Activity Level</em>

Requirement 4

<em>Total predicted cost for September $ 2,482</em>

<em>Total fixed cost for September $1,457</em>

<em>Total predicted variable cost for September $1,025</em>

Explanation:

Requirement 1

High Point = March

Low Point = January

Requirement 2

<em>Variable Cost = Difference in Overhead Cost (High - Low)/ Difference in Activity (High - Low)</em>

                       = $2,810 - $1,744 / 3,300 - 700

                       = $1,066/ 2,600

                       = $0.41

<em>Fixed Cost Component = Total Overhead Cost - Variable Cost × Selected Activity.</em>

Lets Select, January 700 $1,744

Fixed Cost Component = Total Overhead Cost - Variable Cost × Selected Activity.

                                       =  $1,744 - $0.41 × 700

                                       =  $1,457

Requirement 3

Cost formula for tanning services

<em>Total Cost = Fixed Cost + Variable Cost</em>

thus,

Total Cost = $1,457 + $0.41 × Activity Level

Requirement 4

Total Cost = $1,457 + $0.41 × Activity Level

                 =  $1,457 + $0.41 × 2,500

                 = $ 2,482

You might be interested in
You plan to retire in 30 years and you are investing $250 per month in the BMO Large-Cap Growth mutual fund. The fund has an ave
mr Goodwill [35]

Accumulated Balance is given by :

A=P\dfrac{(1+i)^n-1}{i}\times (1+i)

Here,

n = time period = 30×12 = 360.

i=\dfrac{13.45}{100}\times \dfrac{1}{12}=0.0112

P = principal price = $250.

Putting all given values in above equation, we get :

A=250\times \dfrac{(1+0.0112)^{360}-1}{0.0112}\times (1+0.0112)\\\\A=\$1221659.48

Hence, this is the required solution.

6 0
3 years ago
During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200
77julia77 [94]

Answer:

qualified acquisition debt = $750,000

qualified home equity debt = $0

Explanation:

Qualified acquisition debt refers to the debt incurred to purchase or build your home. In this case, Cary and Bill are allowed to itemize the interests paid for up to $750,000 of the acquisition debt ($375,000 if filing separately). This limit was reduced due to the TCJA of 2017, and will remain in place until 2025. After 2025, the limit will return to the normal $1,000,000.

Certain amount of interests on qualified home equity loans will also return in 2025, but currently they are not deductible.  

8 0
3 years ago
Jim Smith is a salesman who receives a $1,100 draw per week against his commission. He receives a 12% commission as an incentive
blondinia [14]

Answer:

$29,000

Explanation:

Given that:

  • Draw per week: $1,100
  • Commission rate: 12%
  • Sales for Jim were $205,000 for the month.
  • 4 weeks in a month

Assuming a four-week month, Jim's commission :

Commission on revenue + commission of total draws

= $205,000*12% + 4*$1,100

= $24,600+ $4,400

= $29,000

Hope it will find you well.

3 0
3 years ago
Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be g
likoan [24]

Answer:

A. Contingency planning

Explanation:

Contingency planning refers to the an approach in forecasting unexpected events by developing an action plan to appropriately respond to such threats. In this scenario, despite that the company expects favourable sales in the future, it is planning to face an unexpected drop in sales.

7 0
3 years ago
Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail
bazaltina [42]

Answer:

there will be a surplus of retail workers in this labor market.

Explanation:

In the attached diagram the scenario is illustrated.

When the minimum wage is above the equilibrium wage it means that the minimum wage is above what employees are willing to pay workers. So employees will be less wiling to pay this amount.

There will be a reduction in the number of available slots for workers.

On the other hand workers will receive higher wage than they expected but since the slots for work are now limited there will be a surplus of labour in the market

3 0
3 years ago
Other questions:
  • What isn't not a stock derivative
    6·1 answer
  • On the balance sheet after adjusting entries are made, the amount shown for the allowance for doubtful accounts is equal to the
    7·1 answer
  • You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
    7·1 answer
  • FILL IN THE BLANK
    9·1 answer
  • A buyer with a $242,000 loan has a monthly principal and interest payment of $1,317.66. If $1,033.54 is interest, what’s the new
    15·1 answer
  • Which of the following is a required financial statement? 1 point Statement of Auditor Independence Statement of Cash Flows Stat
    13·1 answer
  • Suppose Nike's managers were considering expanding into producing sports beverages. Why might the company decide to do this unde
    6·1 answer
  • A college-educated woman waits until age 32 before she has her first child because she wanted to establish her own business firs
    15·1 answer
  • A monopolist's marginal cost curve shifts down, but the firm's demand curve remains the same. as a result of the fall in margina
    9·1 answer
  • More accurate estimates and higher motivation are generally the result of using a(n) Blank______ budget. Multiple choice questio
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!